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Land Rover Considers Manufacturing in India

An anonymous source has told the Wall Street Journal that Jaguar Land Rover is mulling over a decision to develop a manufacturing plant in India, which indicates that the automaker is looking to grow their foothold in the world’s fastest growing economies.

Currently, Jaguar Land Rover has plants in Pune, India that allow teams to assemble vehicle components shipped from the UK. These assembly plants cut down on shipping costs by sending parts - rather than complete vehicles - to India. Still, a full-fledged manufacturing plant would allow the company to be even more profitable in a region that has seen increased demand for Land Rover vehicles over the past five years. Manufacturing Rovers in India would reduce labor costs and allow the company to save on government taxes or duties.

Building a manufacturing plant in India would provide Jaguar Land Rover with a competitive edge over luxury competitors such as Audi, Daimler Chrysler (Mercedes) and BMW each of which do not currently have a facility in the region. The anonymous source noted, “Like Brazil, India is one of the possibilities for Jaguar Land Rover to fully manufacture cars.